You have wanted to buy a new home for ages, and you have finally saved enough money to afford a down-payment. You contact your realtor, talk to your lending company, and identify your dream home. However, when you are knee-deep in the process of negotiating and buying the house, costs start spiraling out of control. You realize that you do not have enough money in your budget to complete the process. This is one of the most common mistakes that rookie home buyers make when they start the process of purchasing their first home. They assume that the only costs involved are closing costs, down payment, and realtor fees. Knowledge of the following costs that are involved in the home buying process will help the new home buyer in South Carolina to budget appropriately, so that they can have enough money to buy the home of their dreams.
Escrow or earnest money costs
After you place your bid on the home and the seller accepts it, you will pay a deposit amount to an escrow agent. This cash is testogel buy in australia online the best proteins called earnest money. The escrow agent can be a real estate agent, a broker, or an attorney. The cash is never paid directly to the home seller.
If you approached a lender to help you finance your home, you will have to pay certain fees to them. Some mortgage lenders will ask for an application fee. You will pay processing costs and documentation costs. You will also pay underwriting fees, tax service fees and the wire transfer costs.
When your lender pre-approves your mortgage, they will give you a commitment letter that states that you have to get an appraisal done before they finance the loan. The mortgage lender is responsible for choosing the appraiser, but you are the one who will foot the bill. A lender always insists on a property appraiser in order to ensure that you are not being asked to pay more than the house is worth.
Credit report costs
Before the lender gives you the money for the mortgage loan, they will need to get a detailed report on your credit history. This report shows how responsible you have been with loans in the past, as well as your debt-to-income ratio. You will have to give them permission to access your credit report, and pay for the associated costs.
Home inspection fees
Both the buyer and the lenders in South Carolina may require a number of inspections to be done on the home before its ownership is transferred. All inspections have to be conducted by a certain date, referred to as the inspection contingency date. You as the home buyer will pay a home inspector to inspect the home. In case any issue is found, you can ask for a more thorough inspection. The lender will ask for the Wood Infestation Report, which is called the CL-100 letter. You may also ask for a lead paint inspection, especially if the house is old.
Homeowners’ Insurance costs
Most South Carolina lenders will only finance a home that has homeowners’ Insurance. If the home seller already had this insurance, they must submit proof to the lender.
Third party costs
There are other third party costs that are associated with purchasing a new home. You will have to pay home survey fees, employment verification fees, and postage or courier services fees. You will also need to get a South Carolina flood certification, and this will cost you. In fact, fees to third parties can cost you as much as five hundred dollars.
In the state of South Carolina, the home buying process is overseen and closed by a settlement agent. Most of the time, the settlement agent is an attorney. The attorney has a lot of responsibilities, including performing a title search, clearing the property’s title, and kick-starting the process of changing the name on the title deed. The attorney also prepares the home ownership contract, and they have to be present during the signing of all the documents. They will also record the various transactions with the relevant municipality. They have to be paid for all the work that they do.
Buyers will be required to pay certain closing fees. They include title exam fees, settlement fees, deed recording fees, and title binder fees. They will also have to pay the archiving fees and the mortgage recording fees. In case the buyer had hired a realtor, they will need to pay them a commission. This commission could be a flat fee or a percentage of the buying price.
There is no denying that the process of buying a home involves a significant amount of money. All the fees and associated costs can add up to quite a substantial amount of money. Therefore, before you place your bid on a home, include all of these costs in your budget so that you can place an offer that you will afford to pay.